Short-term rental loans
Short-term rental loans: Airbnb and VRBO financing, qualified on the booking income.
Vacation rental financing, structured as a DSCR loan. The property qualifies on what it earns as a short-term rental — twelve months of booking history or a projection from the appraisal — not on a long-term lease that does not exist and not on your tax returns. Rates from 7.125% on the best tier, on 30-year terms. Experienced investors can borrow up to 85% of the purchase price, at about 0.75% more in rate.
How short-term rental income is qualified
A conventional lender looks at a vacation rental and sees a house with no lease. An Airbnb DSCR loan is underwritten on the revenue instead. There are two ways to document it:
- Operating history. Twelve months of booking income from the platform statements (Airbnb, VRBO, a property manager’s owner statements). This is the stronger path and the one that supports the highest leverage.
- Projection. For a purchase, or a property you have not yet run as a short-term rental, the appraisal includes a short-term rent analysis and the loan is sized on that projection. An AirDNA report helps us quote; the appraisal’s analysis is what the loan is sized on.
The DSCR is then the qualifying monthly income divided by the full monthly payment — principal, interest, taxes, insurance and HOA dues. On a short-term rental the minimum is 1.00: the income has to cover the payment. Below 1.00, the property can only be financed as a long-term rental, on the long-term rent.
Who qualifies
- Borrower: an individual, LLC, corporation or limited partnership. US citizens and permanent residents. Up to two individual borrowers.
- Credit: 680 minimum, three scores pulled, middle score used. No bankruptcy, foreclosure or deed-in-lieu in the last three years.
- Reserves: six months of the full payment after closing, on top of cash to close on a purchase.
- Experience: the 85% purchase is for investors who already own and operate rental property. For first-time investors, standard leverage depends on the lending partner; the first-time investor conditions on the DSCR page are the starting point.
- Property: 1–4 units, condos and townhomes. Non-owner-occupied, no family occupancy, rent-ready, up to 5 acres.
Program snapshot
- Max LTV, purchase
- 85%*
- Max LTV, rate-and-term
- 80%
- Max LTV, cash-out
- 75%
- Rates from
- 7.125%
- Min FICO
- 680
- Min DSCR
- 1.00 (1.25 for 85%)
- Loan size
- $100k – $2M
- Income used
- 12-month STR history or appraisal projection
- Term
- 30 years, fixed or ARM, no balloon
- Prepayment options
- 0 to 5 years
Leverage by credit score
| Credit | Purchase | Rate-and-term | Cash-out | Conditions |
|---|---|---|---|---|
| 740+ | 85% | 80% | 75% | 85% needs DSCR 1.25+, experienced investors, loan $250k–$2M, purchase only, no interest-only |
| 700–739 | 80% | 80% | 75% | Loans from $200k, property value to $1M; smaller loans and higher values step down |
| 680–699 | 70% | 70% | 70% | — |
Pricing and structure
- Rate add-on of 0.25% over long-term rental pricing, so the best tier starts at 7.125% rather than 6.875%. A 30-year fixed adds about 0.15%; a cash-out refinance adds 0.25–0.375%; a condo about 0.20%. Current pricing is on the rates page.
- 30-year fixed, 5/6 ARM or 7/6 ARM. No balloon.
- No interest-only on short-term rentals. Every payment amortizes.
- The 85% purchase costs about 0.75% more in rate than the same file at 80%. Price both before deciding; the 85% LTV DSCR loan page works through the numbers.
- Prepayment: 5-year, 3-year, 1-year or no penalty (about 1.00% added to the rate). No penalty permitted in Kansas, Maryland, New Mexico or Ohio; limits in Illinois, Pennsylvania, Rhode Island, New Jersey and Mississippi.
Mixed short-term and long-term property
A duplex with one nightly unit and one long-term tenant is common. The rule is simple: when half or more of the rent determination comes from long-term leases, the whole property is underwritten as a long-term rental — long-term pricing, long-term minimum DSCR, interest-only available. When the short-term income is the majority, the short-term rental terms on this page apply to the whole loan.
Markets
Short-term rentals are financed in the 40 states we cover, with two sets of exceptions.
New York and New Jersey. Some markets in both states are unavailable for short-term rental loans except by lender approval. Send the address and we will check before anyone orders an appraisal.
The 85% purchase program is not offered in markets the lender classes as declining, or in these specific markets: Sarasota, DeSoto, Charlotte, Lee, Collier and Miami-Dade counties in Florida; Sevier County, Tennessee (Sevierville, Pigeon Forge); McCurtain County, Oklahoma (Broken Bow); Denver, El Paso, Pueblo, Boulder and Larimer counties in Colorado; Travis, Williamson, Hays, Bexar, Medina, Comal, Nueces, San Patricio and Kleberg counties in Texas (Austin, Round Rock, San Antonio, Corpus Christi); Wayne County and Flint, Michigan; Lake County, Indiana; Cuyahoga County, Ohio; Baltimore, Maryland; Philadelphia County, Pennsylvania. Several of those are strong vacation markets. In them, the standard terms above still apply, up to 80%.
What to send for a quote
Seven items get you real numbers rather than a range. Nothing is pulled and nothing is charged.
- Property address
- Purchase price, or current value for a refinance
- Monthly short-term rental revenue: platform statements for the last twelve months, or an AirDNA projection if you have one
- Annual property taxes
- Annual insurance premium
- HOA dues, if any
- Your credit score range and how many rentals you own
What the lender charges
On this program the lender charges an underwriting fee of about $1,995 and origination of 0% to 3% — zero if you take the rate as priced, or 0.5 to 3 points to buy it down. Loans under $125,000 carry a $1,500 small-loan fee. Fees are itemised on the lender’s disclosure before you commit.
We charge you nothing. No application fee, no processing fee, no upfront fee of any kind. We are paid by the lender when the loan closes.
Timeline
About 30 days from the appraisal order on a typical file. Credit is valid for 90 days, so there is no rush to pull it before the deal is real.
Short-term rental loan questions
Can I get a DSCR loan on an Airbnb?
Yes. The property is qualified on its short-term rental income rather than a long-term lease — twelve months of booking history, or the appraisal’s short-term rent projection on a purchase. Minimum DSCR 1.00, minimum credit 680, up to 80% with 700+ credit and up to 85% on a purchase at 740+ with DSCR 1.25 for experienced investors.
Do I need a year of booking history?
Not for a purchase, and not for a property you are converting. The appraisal includes a short-term rent analysis and the loan is sized on that projection. A year of platform statements is the stronger file and is what supports the top of the leverage table.
What is the minimum DSCR for a short-term rental?
1.00 — the qualifying monthly income has to cover the full monthly payment. The 85% purchase needs 1.25. Below 1.00 the property can only be financed on its long-term rent, under the standard DSCR program.
How much down payment do I need for an Airbnb?
20% with 700+ credit (80% LTV) and 30% at 680–699. Experienced investors with 740+ credit and a DSCR of 1.25 or higher can buy with 15% down under the 85% program. Closing costs and six months of reserves are on top.
How is the rate different from a long-term rental?
Short-term rentals carry a 0.25% add-on, so the best tier starts at 7.125% instead of 6.875%. Interest-only is not offered on short-term rentals; every payment amortizes over 30 years.
Can a first-time investor finance a vacation rental?
The 85% purchase program is for investors who already own and operate rental property. At standard leverage it depends on the lending partner; the first-time investor conditions on the DSCR page (700+ credit, a prior property purchase, your own primary residence, a single unit, DSCR above 1.0) are the starting point. Send the file and we will tell you.
Are there markets where short-term rental loans are not available?
Some New York and New Jersey markets require lender approval. The 85% purchase program excludes declining markets and a list of specific counties, including parts of Florida, Colorado, Texas and the Smokies; in those the standard terms up to 80% still apply.
Easy Lending USA is not a lender, a bank, or a mortgage broker. We introduce real estate investors to independent private lenders, who make every credit decision. Business-purpose loans only, to real estate investors, secured by non-owner-occupied property. Every figure on this page is indicative, subject to underwriting, and not a commitment to lend. No upfront fees of any kind.